Arbeitspapier
Costs of capital and wealth tax: Remarks on Bjerksund and Schjelderup (2022)
This note incorporates wealth taxes in a simple asset valuation model based on discounted cash flows. Any valuation method requires an adjustment of pre-tax into post-tax costs of capital. By adopting the adjustment procedure proposed in previous literature, we show that arbitrage opportunities can occur - which is incompatible with a consistent valuation. In particular, such problems arise if a wealth tax system applies that uses current (instead of previous) stock prices as the basis for assessment. Furthermore, in this setting we derive a consistent relation between pre-tax and post-tax costs of capital that is compatible with the premise of no-arbitrage by exploiting risk-neutral probabilities.
- Sprache
-
Englisch
- Erschienen in
-
Series: arqus Discussion Paper ; No. 279
- Klassifikation
-
Wirtschaft
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kruschwitz, Lutz
Löffler, Andreas
Lorenz, Daniela
Uttscheid, Moritz
- Ereignis
-
Veröffentlichung
- (wer)
-
Arbeitskreis Quantitative Steuerlehre (arqus)
- (wo)
-
Berlin
- (wann)
-
2023
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Kruschwitz, Lutz
- Löffler, Andreas
- Lorenz, Daniela
- Uttscheid, Moritz
- Arbeitskreis Quantitative Steuerlehre (arqus)
Entstanden
- 2023
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